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Mortgage Rates Mixed, but Higher on Average

Mortgage rates were lower today for a few lenders, but higher for most others, dragging the average 0.01% higher in terms of effective rates.  Note rates (which don't factor in the upfront costs associated with a loan quote), on the other hand, haven't changed much in recent days, with 4.0% being the most prevalent for top tier 30yr fixed scenarios.  

Momentum has generally been negative for rates since the weekend of Hurricane Irma.  Markets had priced in quite a bit of risk at the time (typically involves stock prices and rates moving lower), not only due to the Hurricane, but also North Korea-related uncertainty.  When Irma proved to be slightly less catastrophic than forecast, and when the weekend passed without a major nuclear test from North Korea, financial markets embarked on a correction that pulled rates and stock prices higher.  

Just when that correction looked to be leveling off, rates lurched higher again last week due to a combination of factors including the release of the Trump tax plan.  With that, rates are back in line with levels not seen since July.  Any meaningful weakness from here would leave rates in the worst shape since March.  With all of the above in mind, a defensive lock strategy continues to be in order.

This Daily Mortgage Rate Update is provided in partnership with Mortgage News Daily.